Perplexity AI Expands User Base in Japan Through Partnership with SoftBank

Perplexity Expands Its Reach in Japan through Strategic Partnership with SoftBank

After announcing a strategic partnership with SoftBank in April, Perplexity—the innovative AI search engine aiming to rival Google—is leveraging this collaboration to broaden its user base and data touchpoints within SoftBank’s home market of Japan. Beginning June 19, SoftBank, alongside its mobile subsidiaries Y!mobile and LINEMO, will offer one-year complimentary subscriptions to Perplexity’s premium service, Perplexity Pro.

This initiative not only highlights Perplexity’s international growth ambitions but also underscores its focus on generating revenue from its paid tier. Mobile carriers like SoftBank are seeking ways to incorporate AI services without necessarily having the in-house resources to develop their own models. In an environment where interest in AI remains high, partnering with AI companies presents a valuable opportunity to attract users eager to utilize advanced AI features.

Furthermore, this collaboration could help SoftBank secure more customers and increased revenue while exploring opportunities to work with Perplexity on innovative AI-driven services. This strategy echoes earlier partnerships formed by companies like Spotify with mobile carriers to expand their premium user base.

SoftBank isn’t the sole telecom player collaborating with Perplexity; the startup also established a partnership with Germany’s Deutsche Telekom, announced concurrently in April 2024. While it remains unclear whether these carriers are financially investing in Perplexity, SoftBank has prioritized AI as a key component of its business strategy.

The Vision Fund, affiliated with SoftBank, is currently exploring numerous AI startups, with potential deals on the horizon, including discussions with OpenAI and Mistral, though no formal investments have been made yet. Moreover, Masayoshi Son, founder and CEO of the SoftBank Group, is pursuing a monumental $100 billion AI chip venture, with SoftBank being linked to potential acquisitions like Graphcore in the U.K.

In addition, SoftBank launched SB Intuitions, its own Japanese-language Large Language Model venture, last year. The progress of this venture remains uncertain, particularly given that many leading LLM entities are already developing their models for various languages. Nonetheless, users of the Perplexity Pro tier can choose any preferred LLM to enhance their search query results.

In April, the San Francisco-based startup announced it had raised $62.7 million in funding, achieving a valuation of $1 billion, which had doubled in just three months. Reports suggest that Perplexity is actively seeking additional capital, targeting at least $250 million at a valuation between $2.5 billion and $3 billion. Its current roster of investors includes notable names like Bezos Expeditions, IVP, NEA, Sequoia, Nvidia, Databricks, and several high-profile individuals.

Perplexity, accessible via web browsers and apps, generates responses based on the latest web searches. However, it has faced criticism from publishers regarding the attribution of their work in the answers provided (or lack thereof). The startup is actively working on establishing revenue-sharing arrangements.

Perplexity Pro, offered as a subscription service, grants users access to an advanced version of the platform, allowing them to select from the latest Large Language Models (LLMs) for more in-depth information searches and data analytics capabilities. The upgraded version also includes features for generating high-quality images in various styles based on search history and a customizable AI profile that enhances search results and offers chat-based assistance.

As of now, the iOS app subscription is priced at 3,000 yen monthly or 30,000 yen annually, while the web version costs $20 per month and $200 yearly. SoftBank has confirmed that it has not made a financial investment in Perplexity through this strategic partnership, and further details on its plans were not provided by a spokesperson.

This article has been updated to include comments from SoftBank.